Starting in 1997, the adoption tax credit has helped families defray the costs of adoption. As of 2003, special needs adoptions were eligible for the full credit no matter what their adoption expenses totalled.
We were able to claim the full amount of the credit with Meighan's adoption. The first year it was just a credit and we used part of it. The second year it became refundable and we were able to receive the remainder as a REFUND. We used that to help pay for Dawson's adoption fees.
This year, if we finalize his adoption in 2012, the credit is back to being just a credit (not refundable). We can divide it into 5 years (I think) like before but we would not SEE any refund of it.
However, the adoption tax credit is due to expire at the end of this year on December 31, 2012. It will go down (from $12,650) to $6,000 in 2013. It will also limit who is eligible to recieve the credit. This will severely limit the number of families able to adopt as well as limit the number of orphans around the world who would otherwise be place in loving, forever families.
On April 17, 2012, legislation was introduced by Iowa Representative Bruce Braley (an adoptive parent himself) to protect the adoption tax credit. It is called the Making Adoption Affordable Act (HR 4373). Go to http://adoptiontaxcredit.org for information on the credit, the legislation and how to contact your representatives and senators about your support for the adoption tax credit. There is currently no legislation in the Senate at this time but you can request your senator's support for a credit that is inclusive, refundable, flat for special needs adoptions and permanent.
Do this soon! The fate of 1.4 million orphans depends on it!
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